Sergey Brin has returned from retirement to help lead Google's Gemini AI and smart glasses efforts, admitting past mistakes with Google Glass as the company ramps up competition against Apple and Meta in the wearable tech race.
Shares of eyewear retailer Warby Parker (NYSE:WRBY) jumped 17.5% in the afternoon session after Google announced a Smart Glasses partnership with the company (Warby Parker), mirroring the concept behind the Ray-Ban Meta collaboration.
Warby Parker shares jumped after announcing a strategic partnership with Google. They will create AI-powered smart glasses for all-day wear, launching after 2025.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
Retailers are overhauling their operations as technology redefines the shopping experience. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars.
This puts retail stocks in a tough spot, and over the past six months, the industry has pulled back by 13.7%. This performance was worse than the S&P 500’s 5.5% decline.
Eyewear retailer Warby Parker (NYSE:WRBY) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 11.9% year on year to $223.8 million. The company’s full-year revenue guidance of $877.5 million at the midpoint came in 0.7% below analysts’ estimates. Its GAAP profit of $0.03 per share was 55.9% below analysts’ consensus estimates.
Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around.
Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
Looking back on specialty retail stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Warby Parker (NYSE:WRBY) and its peers.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Dick's (NYSE:DKS) and its peers.
In a sliding market, Warby Parker has defied the odds, trading up to $18.07 per share. Its 16% gain since October 2024 has outpaced the S&P 500’s 1.6% drop. This performance may have investors wondering how to approach the situation.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ:ULTA)
will be reporting earnings tomorrow after the bell. Here’s what you need to know.
